USA announced several tariffs over the weekend, including a 10 % tariff for China. As we have highlighted in the latest reports, US is one of H&M largest markets (some 15% of revenue), while China accounts around 25% of its sourcing. Hence, the new tariff will increase costs for the goods shipped from China to US. The magnitude of the impact for the group is however modest give the tariff is only 10 % at least for now. Also, we understand the situation is pretty similar for competitors so the industry is likely to push the increased costs to higher selling prices. This will not happen overnight however, so there’s some margin pressure for H&M in the US in the short term, we believe.
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